Ethereum reached the $1,265 key support zone in relation to the US Dollar. ETH could correct higher but upsides may face obstacles near $1,300 or $1,310.
- Ethereum is still in bearish territory below $1,350-$1,320 support levels.
- The current price trades below $1,300 as well as the simple 100-hour moving average.
- The hourly chart for ETH/USD showed a breakout above the connecting bearish trendline with resistance at $1,285 (data feed via Kraken).
- If the pivot point is not reached, it will continue to be at risk of sharp falls.
Ethereum Price Faces Challenges
Ethereum fell below the $1300 support zone and showed bearish momentum. ETH also fell below $1280, and closed below the 100 hourly simple movement average.
There was a minor push below yesterday’s low, but the bulls were active near the $1,265 zone. The price corrected higher after a low formed at $1,268. A short-term rally was seen above $1,280. Ether was able clear 23.6% Fib Retracement Level of recent fall from the $1.337 swing high, to the $1.268 low.
A break was seen above the connecting bearish trendline with resistance close to $1,285 in the hourly chart. It trades below $1,300 as well as the simple moving average of 100 hours.
Near the $1,295 area is immediate resistance. It is located near the $1300 level. The 50% Fib level is very close to where the last drop was from $1.337 swing high and $1.268 low. The upside breakout above the $1300 resistance zone could lead to a rise in ethereum prices towards $1,320.
Source: TradingView.com ETHUSD
The price could rise further if it breaks above $1,320. Near the $1,350 mark, the next significant resistance, the price may revert to $1,400 above that level.
Are There More Losses in Ethereum?
It could move lower if it fails to overcome the $1,300 resistance. Initial support for the downside lies near $1,270.
Near the $1,265 support level is the next significant support. A sharp drop could be possible if the downside breaks below $1,265 If this is the case, the ether price could fall towards the $1200 mark.
Technical indicators
Minutely MACD – MACD for USD/ETH is losing momentum now in the bearish area.
Hourly RSI – The RSI of ETH/USD has risen to 50.
Major Support Level – $1,265
Major Resistance Level – $1,300